Question

Small business residential construction loan closing costs

Forum|Forum|2 years ago
March 15, 2024
1 reply
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Small LLC took out a construction loan in 2023 and have a lot of “work in progress” as an asset. The question is, where in TurboTax do the construction loan closing costs go? I think they need to be capitalized, but right now, I am not sure they should be in expenses or treated like an asset as in work in progress.

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ThomasM125

It would be best to include the closing costs in work in process as an asset, as they are directly tied to the construction project.

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SRS6Author

Thank so much for the reply, esp on tax day! I came to the same conclusion as your suggestion around 1am and submitted them - lol. Your posting makes me feel good about my decision. Thank you!